2018 Financial Results Presentation Webcast & Conference Call - - PowerPoint PPT Presentation

2018 Financial Results Presentation

Webcast & Conference Call 28 March 2019

Disclaimer

2

THIS DOCUMENT AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation may contain “forward-looking statements”, which are statements related to the future business and financial performance and future events or developments involving the En+ Group. Such forward-looking statements are based on the current expectations and certain assumptions of the En+ Group’s management, and, therefore, should be evaluated with consideration taken into of risks and uncertainties inherent in the En+ Group’s business. A variety of factors, many of which are beyond the En+ Group’s control, can materially affect the actual results, which may differ from the forward-looking statements. This presentation includes information presented in accordance with IFRS, as well as certain information that is not presented in accordance with the relevant accounting principles and/or that has not been the subject of an audit. En+ Group does not make any assurance, expressed or implied, as to the accuracy or completeness of any information set forth herein. Past results may not be indicative of future performance, and accordingly En+ Group undertakes no guarantees that its future operations will be consistent with the information included in the presentation. En+ Group accepts no liability whatsoever for any expenses or loss connected with the use of the presentation. Please note that due to rounding, the numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Information contained in the presentation is valid only as at the stated date on the cover page. En+ Group undertakes no obligation to update

• r revise the information or any forward-looking statements in the presentation to reflect any changes after such date.

This presentation is for information purposes only. This presentation does not constitute an offer or sale of securities in any jurisdiction or

• therwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities of the En+ Group. If

this presentation is provided to you in electronic form, although reasonable care was used to prepare and maintain the electronic version of the presentation, En+ Group accepts no liability for any loss or damage connected to the electronic storage or transfer of information.

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Appendix

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

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Executive Summary

• US sanctions lifted on 27 January 2019
• Corporate governance strengthened by changes to the Group’s Board and ownership structure
• Positive outlook with increasing demand and improved supply discipline
• EV revolution continues to shape the positive long-term outlook for aluminium and nickel
• Near term focus on reinforcing business as usual with investments into key strategic projects,

deleveraging and stabilising group performance post sanctions

• Dividend policy unchanged from IPO – market to be updated on future dividends decisions

including interim dividends for 2019 following review by BoD of Group’s financial standing not later than Autumn 2019

Enhanced Corporate Governance Market Fundamentals Remain Robust Efficient Capital Allocation Successfully Navigated Through Challenging Environment

• Profitability and liquidity maintained despite regulatory challenges - EBITDA USD 3.3 bn in 2018 vs

USD 3.2 bn in 2017, Net Debt reduced to USD 11.1 bn in 2018 vs USD 12.2 bn in 2017

• Additional working capital of с. USD 1 bn deployed by Metals segment to ensure stability of
• perations

Continued Focus on Sustainability

• Committed to sustainable reduction of greenhouse gas emissions. In 2018, the level of UC Rusal’s

GHG emissions were 7.5% lower than the levels registered in 2014

• Commitment on responsible business conduct, investments in local communities and environmental

stewardship with focus on improvement of environment near our operations: Baikal preservation, ecological volunteering, etc.

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

5

En+ Group: Investment Fundamentals Remain Strong

1 2 3 4 5 6

Global Leader in Hydro Power Generation and Aluminium Production

• #1 Independent hydro power producer globally(1)
• #1 Aluminium producer in the world (ex-China)(2)

(1) According to SEEPX. (2) According to CRU estimates. (3) As of 12M2017 (4) Calculated, for any period, as cash flows generated from operating activities before capital expenditures and interest less interest paid and less capital expenditures adjusted for restructuring fees, payments from settlement of derivative instruments, one-off acquisitions plus dividends from associates and joint ventures.

Vertically Integrated Low Carbon Business Model

• 64 TWh En+ Siberian HPPs long-term average power production vs. c. 60 TWh RUSAL power consumption in Siberia
• c.100% self-sufficiency in alumina and c.70% self-sufficiency in bauxites and nephelines with c.100% targeted in the medium-term(3)

Unique Asset Base and Operational Excellence Contributing to Cost Leadership

• Industrial interlink between cost-efficient HPPs with aluminium smelters resulting in one of the lowest cost positions globally

Strong and Resilient Cash Flow Generation Underpinning Sustainable Shareholder Returns over LT

• 75% of Free Cash Flow(4) of Energy segment to be paid out in dividends supplemented by 100% of UC RUSAL dividends

Experienced Management and Robust Corporate Governance

• A new, majority independent board committed to best in class corporate governance
• Adherence to best corporate governance practices globally

Upside Potential from Multiple Catalysts

• Return to ‘business as usual’ post sanctions, driving incremental aluminium volumes
• Spare capacity of existing HPPs can be utilised to meet increased demand upon ramp up of UC RUSAL’s new smelters
• Working capital reduction targeted in near future

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

6

Removal of OFAC Sanctions Designation

Revised ownership structure

Sanctions against En+ Group removed on 27 January 2019 Restructuring of En+ Group ownership and governance under the Barker plan En+ Group and UC RUSAL board to consist of a majority of independent directors

• Mr. Deripaska can nominate to En+ Board no more

than 4 directors out of 12 Ongoing commitment to transparency and regulatory auditing Glencore exchanged interest in RUSAL for 10.55%

• wnership in En+

as of 26.01.2019

2/3 - Independent Votes

(1) GDRs issued as a part of Glencore swap transaction

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

7

Enhanced Corporate Governance

Christopher Burnham Nicholas Jordan Carl Hughes Joan MacNaughton Igor Lojevsky Alexander Chmel Andrey Sharonov Vadim Geraskin Elena Nesvetaeva Ekaterina Tomilina

Deputy CEO for Government Relations at Basic Element Company LLC Head of the Investment Department at Basic Element Company LLC Director of Corporate Finance at Basic Element Company LLC Senior Independent Director Chairman and CEO of Cambridge Global Capital. Globally recognised expert in the implementation of transparency and accountability Former Vice Chairman, senior audit partner at Deloitte with 30 years+ experience in mining and utilities sectors Influential figure in international energy and climate policy. Worked in the UK government in a wide number of leadership roles 30 years‘+ in senior positions in leading global financial

• institutions. Former Co-CEO of

Goldman Sachs Russia and CEO

• f Russia & CIS at UBS

Former Vice Chairman of Eastern Europe for Deutsche

• Bank. Extensive experience of

board-level governance in large, complex organisations Senior Advisor to Board Practice

• f Spencer Stuart in Russia & CIS.

Extensive board-level experience in Russian public companies President of the Moscow School

• f Management SKOLKOVO.

Former Chairman of the BoD and Head of IB of Troika Dialog Investment Company

En+ stands out in the Russian corporate landscape and is comparable with global peers as the Company, which is:

• majority owned by independent shareholders;
• with a majority independent board;
• with an Executive Chairman;
• where founder / largest shareholder is not involved

in management

• Consists of 12 members
• 8 world caliber independent directors represent

the majority of the BoD

• All Board committees chaired by independent

directors

• Two new Board committees established:

̶ The Health, Safety and Environment Committee ̶ The Regulation and Compliance Committee

New Board of Directors:

• Rt. Hon. Lord Barker of Battle PC

Philippe Mailfait

A life Peer, since October 2015

• a member of the House of

Lords of the UK Parliament. From 2010 to 2014 - the UK Minister of State for Energy & Climate Change Prior to joining the Group, he held different executive positions at Banque Worms and Banque de Gestion Privée (Paris), among others Executive Chairman Independent directors Non-executive directors

2/3 - Independent Directors

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Appendix

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

9

FY 2018 Operational Highlights

FY 2018 FY 2017 Change Total aluminium production 3,753 kt 3,707 kt 1.2% Total aluminium sales 3,671 kt 3,955 kt (7.2%) Total electricity production1 HPPs CHPs 73.2 TWh 58.3 TWh 14.9 TWh 68.4 TWh 54.9 TWh 13.6 TWh 7.0% 6.2% 9.6% Heat production 27.9 mn Gcal 26.7 mn Gcal 4.5% Average LME aluminium price USD 2,110/t USD 1,968/t 7.2% Average electricity spot prices2 in 2nd price zone Irkutsk region Krasnoyarsk region 888 Rb/MWh 842 Rb/MWh 824 Rb/MWh 865 Rb/MWh 833 Rb/MWh 804 Rb/MWh 2.7% 1.2% 2.6% Average USD/RUB Exchange Rate 62.71 RUB/USD 58.35 RUB/USD 7.5% Macro Sales and production

Source: Company data, Bloomberg (1) Excluding Ondskaya HPP (2) Day ahead market prices, data from ATS and Association “NP Market Council”

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix 4 4 7 4 FY 2017 FY 2018 Metals segment Energy segment 455.98 456.64 As at the end

• f FY 2017

As at the end

• f FY 2018

0.55 0.6 0.75 0.8 FY 2017 FY 2018 Energy segment Metals segment 2.2 2.1 FY17 FY18

10

Sustainability Performance

Fatalities1 Lost time injury frequency rate

Per million hours worked

UC RUSAL`s GHG Emissions

tCO2eq/tAl

Change in water levels in Lake Baikal2

• Lake Baikal is characterised by the high variability of its water inflow. This causes

natural changes and fluctuations to the water level, which are also typically inconsistent.

• In 2018, water inflows to Lake Baikal have recovered, moving closer to normal

levels (101.3% of normal levels in 2018, compared to 59.6% of normal levels in 2017).

(1) Work related employees (2) In accordance with the Federal Law on the Protection of Lake Baikal (December 27, 2017 No. 1667), the minimal level in the lake during low water periods must be 455.54 metres (Pacific elevation) and the maximum water level during high water periods – 457.85 metres (Pacific elevation) in 2018-2020.

• UC Rusal’s strategic aim is to reduce direct specific greenhouse gas emissions at its

existing aluminium smelters by 15% by 2025 compared to 2014’s levels.

• In 2018, the level of emissions amounted to 2.11 t CO2eq/tAl, 7.5% lower than the

levels registered in 2014 (2.28 tCO2eq/tAl).

• In 2018 UC Rusal launched work to update its OHS management system to align

with the requirements of the new international standard ISO 45001:2018.

• Energy segment continued the project on safety culture development. In 2018,

special educational programmes were conducted: ‘Efficient OHS management’, ‘Leadership in safety 'and ‘Safety consciousness’

• During 2018 , UC Rusal also launched a new project “Safe pot rooms”, that will

improve safety conditions in pot rooms to further reduce risks of injury at smelters, as well as a pilot project “Automated information system of production safety”, with the aim creating an integrated information system between all departments, to handle issues related to OHS measures.

• All accidents accrued in 2017 and 2018 have been investigated, corresponding

measures are developed and implemented

8 11

In 2019, the Board of directors established a new HSE Committee, which will address the issues and challenges the Group faces with a view to reinforce world-class practices and deliver improvement

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

1,147 1,174 2,120 2,163

FY 2017 FY 2018 Energy segment Metals segment

66% 11% 8% 4% 4% 7% Primary aluminium and alloys Electricity Alumina and bauxite Heat Semi-finished products and foil Other revenue 35.8% 33.2% 7.2% 9.4% 14.4% CIS Europe America Asia Other 11

FY 2018 Financial Highlights

(1) Adjusted EBITDA for any period represents the results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment for the relevant period. (2) Net debt – the sum of loans and borrowings and bonds outstanding and deferred liability for acquisition of PJSC Irkutskenergo (the Group’s subsidiary) shares less total cash and cash equivalents as at the end of the relevant period. (3) From external customers. (4) After consolidation adjustments.

FY 2018 Revenue by product3

USD 12,378 mn

• Adj. EBITDA by segment

(USD mn)

FY 2018 Revenue by region3

3

USD mn FY 2018 FY 2017 Change Revenue 12,378 12,094 2.3%

• Adj. EBITDA1

3,287 3,223 2.0%

• Adj. EBITDA margin

26.6% 26.6%

• Net profit

1,862 1,403 32.7% Net profit margin 15% 12% 3 pp Net Debt2 11,094 12,164 (8.8%) Capex ( before intersegm. elimination) 1,015 990 (2.5%)

USD 12,378 mn

3,2874 3,2233

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

12

En+ Group Revenue and EBITDA Breakdown

(1) Results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment for the relevant period.

FY 2017 Revenue build-up

(USD mn)

• Adj. EBITDA1 build-up

(USD mn)

12,094 9,969 3,235 (1,110) Metals Energy Adj. Revenue 12,378 10,280 3,147 (1,049) Metals Energy Adj. Revenue 3,223 2,120 1,147 (44) Metals Energy Adj. EBITDA 3,287 2,163 1,174 (50) Metals Energy Adj. EBITDA

FY 2018 FY 2017 FY 2018 FY 2018 working capital build-up

(USD mn)

1,767 542 83 419 2,811 Working capital, FY2017 Increase in inventories Increase in trade receivables Decrease in trade payables Working capital, FY2018

• Working capital has increased significantly during 2018 as a result of

difficulties in Metals segment. The negative change in working capital was mostly related to the negative impact of sanctions in 2018

• The Group is in the process of normalising relationships with partners

and customers and it is expected that in the second half of the year, the situation should improve and return to more or less the same state as it was before the sanctions

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

13

En+ Group Free Cash Flow

952 295 1,039 464 1,702 963 680 413 806 909 (481) (148) (381) (181) (485) (842) (461) (834) (966) (990) 1,258 2,628 (842) (1,015) 106 877

OpCF and dividends from associates and JVs Net interest Capex Other financial expenses FCF OpCF and dividends from associates and JVs Net interest Capex Other financial expenses FCF

Energy segment Metals segment Dividends from associates and JVs

1 1

En+ Group free cash flow and capex

(USD mn)

FY 2017 FY 2018

2 3 4 2 3

Robust cash flow generation through challenging 2018

3,460 (246)

(1) Operating cash flow is calculated as adjusted EBITDA (Results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment for the relevant period) adjusted for the changes in net working capital, adjustments for non-cash items, income taxes paid. (2) Cash interest paid less cash interest received. (3) Capital expenditure represents cash flow related to investing activities – acquisition of property, plant and equipment and intangible assets, adjusted for one-off acquisition of assets. (4) Restructuring fee, expenses related to offering and payments from settlement of derivative instruments (5) Calculated as operating cash flow less net interest paid and less capital expenditure adjusted for payments from settlement of derivative instruments plus dividends from associates and joint ventures.

5 5 4

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

14

Segment Highlights

Metals Segment Energy Segment

(1)

• Adj. EBITDA for any period represents the results from operating activities adjusted for amortisation and depreciation, impairment charges and loss on disposal of property, plant and equipment for the

relevant period. (2) In 2018, the average for the period RUB/USD exchange rate increased by 7% to 62.71 compared to 58.35 in 2017. (3) Excluding dividends from UC Rusal

USD mn FY 2018 FY 2017 Change Revenue 3,147 3,235 (2.7%)

• Adj. EBITDA1

1,174 1,147 2.4%

• Adj. EBITDA margin

37.3% 35.5% 1.8pp Net profit3 211 223 (5.4%) Net profit margin 6.7% 6.9% (0.2pp) Net Debt 3,652 4,516 (19.1%) Capex 181 148 22.3% USD mn FY 2018 FY 2017 Change Revenue 10,280 9,969 3.1%

• Adj. EBITDA1

2,163 2,120 2.0%

• Adj. EBITDA margin

21.0% 21.3% (0.3pp) Net profit 1,698 1,222 39.0% Net profit margin 16.5% 12.3% 4.2pp Net Debt 7,442 7,648 (2.7%) Capex 834 842 (1%)

Through its integrated business model En+ Group continued to deliver sustainable results

• Revenue from electricity and heat were almost flat in 2018 compared

to 2017 despite depreciation of the rouble2, which was compensated by increase in electricity sales volumes and weighted average electricity and capacity prices, as well as growth in heat tariffs

• In 2018, the Energy segment’s net profit decreased by 5.4% y-o-y to

USD 211 mn due to depreciation of rouble which was partially compensated by an improvement in operational performance

• In 2018, the revenue attributable to the Metals segment increased by

3.1% y-o-y to USD 10,280 million, primarily due to higher average aluminium sales price, premiums and alumina prices and due to a 14.1% increase in sales of other materials

• In 2018 the Metals segment achieved a profit for the period of USD

1,698 million (up 39.0% y-o-y), the growth was driven by improved revenue performance together with an increase in share of profit of associates and joint ventures

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

15

Power Market Update

Electricity spot prices 2, Rb/MWh

• th. RUB/MW/month

2016 2017 2018 2019 2020 2021 2nd price zone 189 182 186 190 191 225

Capacity prices 3

Average market price, RUB/MWh FY 2018 FY 2017 Change 2nd price zone 888 865 +2.7% Irkutsk region 842 833 +1.1% Krasnoyarsk region 824 804 +2.5%

Average electricity spot prices 2

(1) System Operator of the Unified Power System. (2) Day ahead market prices, data from ATS and Association “NP Market Council”. (3) According to Russian regulations in the power industry, capacity price is defined by supply-demand balances, set in real terms and linked to CPI-1% till 2017 and CPI-0.1% since 2018.

TWh FY 2018 FY 2017 Change Production in Siberia 205.3 202.7 +1.3% HPPs production 101.9 93.9 +8.5% Consumption 210.1 205.9 +2.0%

Power supply and demand in Siberia 1

520 620 720 820 920 1,020 1,120 Jan'17 Mar'17 May'17 Jul'17 Sep'17 Nov'17 Jan'18 Mar'18 May'18 Jul'18 Sep'18 Nov'18 2nd price zone Irkutsk Krasnoyarsk

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

• 1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Jan Feb March Apr May June July Aug Sept Oct Nov Dec Average (1977-2018) 2015 2016 2017 2018

16

Improving Water Inflows Driving an Increase in HPP Generation

Water inflows, Angara cascade1 (m3 per sec.) Water inflows, Yenisey cascade / KHPP (m3 per sec.)

(1) Hydro production and water inflows data for Angara cascade include Irkutsk, Bratsk and Ust-Ilimsk HPPs.

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Jan Feb March Apr May June July Aug Sept Oct Nov Dec Average (1977-2018) 2015 2016 2017 2018

Overview Water level (m)

Normal Minimum 31.12.2018 31.12.2017 Irkutsk HPP 457.00 455.54 456.64 455.98 Bratsk HPP 402.08 392.08 396.43 395.28 Ust-Ilimsk HPP 296.00 294.50 295.71 294.71 Krasnoyarsk HPP 243.00 225.00 236.74 236.58

• The Group’s Angara cascade HPPs (Irkutsk, Bratsk and Ust-Ilimsk

HPPs) increased power generation by 5.7% y-o-y to 36.8 TWh in 2018 due to more favourable hydrological conditions

• Water inflows to Lake Baikal have recovered in 2018, moving

closer to normal levels. The water level of Lake Baikal reached 456.64 metres as at the end of 4Q 2018 (455.98 metres at the end of 4Q 2017)

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

17

Global Aluminium Market to Stay in Deficit

• The Company estimates that the global aluminium market turned

into heavy deficit of 1.6 mn tonnes in 2018 and is likely to remain in deficit of about 1 mn tonnes per annum in 2019-23.

• Global aluminium demand CAGR is forecasted at 4% pa over 2019-23
• On the supply side:

⁻

There are no new significant supply projects outside of China (excluding UC Rusal)

⁻

14 - 18 mln t of ROW smelting capacity is lossmaking at the average LME price for January 2019

• Through 2017-2018 ROW reported stocks have declined to pre-2008

crisis level as production grew at moderate pace

ROW reported stocks ROW liquid metal costs 1 Global Supply and demand balance is expected to further tighten

Source: CRU, LME, companies data, RUSAL analysis (1) 1Q 2019 average is calculated as YTD average

59.2 63.8 64.1 66.9 69.7 72.4 74.4 76.3 60.4 64.1 66.2 68.6 70.8 73.3 75.8 78.2

• 824
• 164
• 1569
• 1356
• 673
• 614
• 1200
• 1601
• 1,800
• 1,600
• 1,400
• 1,200
• 1,000
• 800
• 600
• 400
• 200

22 32 42 52 62 72 82 2016 2017 2018 2019 2020 2021 2022 2023 Mln mt Production Consumption Balance (in kmt)

20 40 60 80 100 120 2000 3000 4000 5000 6000 7000 8000 days kt ROW public stocks Days of consumption (rhs)

1200 1500 1800 2100 2400 2700 0Mt 4Mt 8Mt 12Mt 16Mt 20Mt 24Mt 28Mt $/t 13,699kt

All-in Price in 1Q2019

LME Average in 1Q2019 18,218kt

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

18

Effect of Supply Side Reform in China

China continues to implement Supply-side reform in aluminium, first effect seen in 2018. That has put an end to unreasonable supply expansion, as well as rebalancing the Chinese domestic market and supporting higher aluminium prices

• The government has identified ~4.5 mt of illegal capacity
• Around 6 mn tonnes of projects under construction was frozen as

considered illegally constructed

• Around 3 mln tonnes of capacity was cut due to low SHFE price in

2018 YTD and 2 mln tonnes expected to be cut in 2019

• In addition to the supply cuts policy, starting from October, 2017, MEP

has applied “special air emission standard” to “2+26” area. Stricter permissible air pollutants concentration put additional environmental pressure on refineries, smelters and their captive power plants

• Negative growth of operating capacity in 2018 nullified capacity expansion, YTD capacity growth is flat
• Companies strictly follow governmental orders and maintain production discipline
• The established capacity replacement quota mechanism effectively controls the overcapacity issue
• There are clear signs of supply will be matching demand over next 2-3 years

Source: Aladdiny, MEP, UC RUSAL Research. 36.1 36.0 36.4 37.6

• 3,2

1.4 2.2 1.2 30.0 31.0 32.0 33.0 34.0 35.0 36.0 37.0 38.0 mt +19.8%

• 0.2%

+1.0% +3.3% 12000 13000 14000 15000 16000 0Mt 5Mt 10Mt 15Mt 20Mt 25Mt 30Mt 35Mt 40Mt RMB/t Full Costs ex. depreciation, December 2018

20.7 Mt (60%) SHFE avg price in Feb 1-22

76% 78% 80% 82% 84% 86% 88% 30 32 34 36 38 mt annualized production capacity utilization rate, rhs

China capacity evolution Chinese Smelters costs China annualized production

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

19

Electric Vehicle Opportunity

3 2 1 1

Trend for lighter and more energy efficient car bodies is expected to accelerate, thus increasing Al content in vehicles

• For example in 2014 Ford switched to an all aluminium design for the F-150,

the US’s most popular pickup truck in the last 38 years. Ford joined many other brands offering all aluminium models

2

NCA batteries (Nickel Cobalt Aluminium) are becoming the product of choice for the rapidly growing EV industry

• Global EV sales in 2018 surged by 63% (up to 2m) and are predicted to reach

12-14m in 20251

• Global EV stock is expected to reach up to 200m in 2030
• UK is expected to ban combustion engines from 2040

3

As EV’s market share grows, the entire power generation and distribution infrastructure will need to adapt

• Global installation base of EV charging stations is forecast to grow to more than

12.7m by 2020 from ~2.5m in 2018

• Power supply to houses and charging stations will need to be re-wired to

accommodate higher voltages and currents

% of global car sales

2018 2020 2025 2030

EV Sales Penetration Forecast1

200 400 600 800 2014 2015 2016 2017 2018 2019 2020 2021 Alloy Steels Non-Ferrous Alloys Plating Other Batteries 0.3 0.4 0.6 0.9 1.0 1.3 1.5 1.8 2.0 2.3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (mt) 70% 60% 100% 100% Mass Cost Aluminium Copper

1

Global demand for aluminium sheets in the automotive industry is increasing

2

Nickel demand for batteries is set to significantly expand

3

Aluminium cable is lighter and less expensive versus copper equivalent

Non-stainless nickel demand (kt)

Source: CRU, RUSAL analysis, International Energy Agency, Aluminiumleader.com, HIS, BCG, UBS, McKinsey, Ducker data, etc. (1) There is currently no consensus on EV growth, studies are ranging from 5% to 90% in 2030

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Appendix

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FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Capital Allocation and Dividend Policy

21

Long Term commitment to dividend policy

• riginally

adopted in 2Q 2017 Near term focus

• n evaluating

financial impacts of protracted period under sanctions and restoring business as usual Pay a dividend on at least a semi-annual basis equal to the sum of:

• 100% of dividends received from UC RUSAL; and
• 75% of Energy segment Free Cash Flow, subject to a minimum of USD

250mn p.a.

• Capital Allocation Priorities in 2019:
• Strategic projects in Metals Segment to complete announced

vertical integration, product mix enhancements, entering new markets and volumes growth;

• “New Energy” Programme and CHPs upgrades, including

improvement in environmental footprint; and

• Deleveraging in accordance with existing debt maturity profile;
• Upon review of financial position and subject to prevailing

macroeconomic conditions the company anticipates announcements regarding dividends, including interim dividends for 2019 in Autumn 2019

22

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

En+ Strategic Outlook

22

• Management continues to monitor the long-term impacts of the period under sanctions with some

negative impacts expected to continue into 2019

• Under currently prevailing macro environment (i.e. current Al price at c. 1,850 USD/t vs. average for

2018: 2,110 USD/t ) management anticipates some pressures on revenues as compared to 2018

• Group remains committed to development of strategic projects in Metals and Energy segments,

anticipating CAPEX growth given projects rescheduling to 2019, further investments into capacities upgrades, inc. environmental protection, as well as global partnerships to enter new markets

• Aluminium production anticipated to be flat at c. 3.8 mnt in 2019
• Electricity production expected to be stable at c. 70-72 TWh in 2019

Financial Outlook Production

• Aluminium prices over the course of 2018 were extremely volatile with supply chain disruptions giving

an intraday peak price of 2,718 USD/t and minimum price of 1,830 USD/t through 2018

• Global aluminium demand is expected to continue positively in 2019
• Consumers of aluminium will gradually adapt to the current market conditions: global aluminium

demand is expected to rise by 3.7% YoY in 2019 outstripping supply creeps

Market Outlook

A resilient business with #1 positions in Energy and Aluminium with upside growth prospects and a strong free cash flow generation from a fully integrated low carbon business model

Ongoing Commitment to Sustainability

• New Energy programme – increased HPP output to partially replace energy from coal-fired power

stations, which should help to reduce the Group's CHPs greenhouse gas emissions by approximately 2.8 mnt of CO2, representing c. 11% of the 2018 CHP CO2 emission volume per year

• Commitment to 100% low carbon electricity for RUSAL smelters in Russia by 2020

Working Capital Management

• Based on the current market situation and focus on improvement of working capital, the Group is

targeting a return to historical levels of working capital over the course of next 12 months

Contacts

23

For further information, please visit https://www.enplusgroup.com/en/investors/

• r contact:

For investors: E: ir@enplus.ru For media: E: press-center@enplus.ru T: +7 (495) 642 7937

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Appendix

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

8.1 9.4 9.4 7.9 7.6 8.6 11.1 9.4 34.8 36.8 45 4.7 4.9 5.1 5.4 4.5 5.5 5.6 6.0 20.1 21.5 18.5 12.8 14.3 14.4 13.3 12.1 14.1 16.7 15.4 54.9 58.3 63.5

1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2017 FY 2018 Long-term average

Angara cascade (incl. Irkutsk, Bratsk and Ust-Ilimsk HPPs) Yenisey cascade (KHPP) 10.2 4.4 2.9 9.3 11.2 4.5 2.8 9.5 26.7 27.9 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 FY17 FY18 4.6 2.0 2.3 4.7 5.5 3.2 1.6 4.6 13.6 14.9 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 FY17 FY18

Energy Generation Volumes

25

Hydro power generation1

(TWh)

Note: Due to rounding, total may not correspond with the sum of the separate figures. (1) Excluding Ondskaya HPP (2) FY average since 1970 for Krasnoyarsk HPP and since 1977 for Angara cascade.

CHP electricity generation Heat generation

(TWh) (mn Gcal)

2

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

21.6 23.9 5.2 6.1 36.2 39.1 4.3 3.7 17.6 18.6 84.9 91.4 FY 2017 FY 2018 Retail Regulated contracts Free bilateral contracts Balancing market Spot market 148.1 140.5 21.6 23.0 169.7 163.5 FY 2017 FY 2018 Regulated contracts KOM

• Electricity sales increased by 7.7% y-o-y to 91.4 TWh in 2018. Growth in total electricity volumes sold was mainly driven by an

increase in retail sales and sales through free bilateral contracts

• Capacity sales decreased by 3.7% y-o-y to 163.5 GW, KOM sales decreased by 5.1% y-o-y to 140.5 GW due to changes in capacity

sales / purchase structure

Energy Segment Sales Breakdown

26

Electricity sales Capacity sales1

(TWh) (GW)

(1) Capacity sales volume equals sellable capacity multiplied by 12 months. (2) Day ahead market. (3) KOM is a Russian abbreviation for Competitive Capacity Outtake. KOM sales include capacity supply contracts / DPM (Abakan SPP) and must run generation. Siberian hydro capacity prices (excl. regulated contracts) are 100% liberalized from May 2016.

3 2

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Energy Segment EBITDA Analysis

27

Energy segment EBITDA in FY 2018

(USD mn)

Energy segment EBITDA in FY 2017

(USD mn)

Note: The calculations are for illustrative purposes only and based on management accounts.

EBITDA margin (%) 981 1,174 57 59 77 HPPs CHPs Coal Other and interco Total

85 7 17 37 na

953 1 147 55 37 102 HPPs CHPs Coal Other and interco Total

83 7 11 35 na

1,174

1,147 (80) 53 44 10

• Adj. EBITDA

2017 FX Prices on electricity and capacity HPP generation Other

• Adj. EBITDA

2018

FY 2018 adj. EBITDA bridge build-up

(USD mn)

In 2018, the Energy segment’s Adjusted EBITDA increased by 2.4% to USD 1,174 million. The key drivers were: ̶ Foreign exchange rates: in 2018, the average for the period RUB/USD exchange rate over the period increased by 7.5% to 62.71 compared to 58.35 in 2017. ̶ HPP generation: The Group’s HPPs increased generation by 6.2% y-o-y to 58.3 TWh in 2018 ̶ Prices: there was an increase in electricity sales volumes and weighted average electricity and capacity prices, as well as growth in heat tariffs

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Energy Segment Capital Expenditure

28

• In 2018, capex accounted for RUB 11 bn (USD 181 million), with maintenance

capex remained stable y-o-y, in line with long-term historical average of RUB 9 billion

• The Energy segment continues investing into the operational efficiency of its

assets and grid infrastructure development

• The ‘New energy’ programme which is the key strategic priority of the Energy

segment's investment targets an increase in green energy production by 2.3 TWh per year by 2022 from the Group’s HPPs using the same volume of water

• Total capital expenditures are expected to increase in 2019 due to:
• Continued programmes of HPPs and CHPs efficiency improvement
• Increased investment in grid infrastructure
• Increased investment in the improvement of coal mining facilities

Source: En+ Group’s IFRS statements, En+ Group management accounts. Note: Converted to RUB at average USD/RUB rate of 62,71 and 58.35 for 2018 and 2017 respectively. (1) Capital expenditure represents cash flow related to investing activities – acquisition of property, plant and equipment and intangible assets

‘New energy’ programme:

Period Project Status 2011– 2017 Bratsk HPP: 12 runners replacement Completed 2014 – 2018 Ust-Ilimsk HPP: 4 runners replacement Completed 2015 – 2019 Krasnoyarsk HPP: 2 runners replacement 2 runners were produced in August 2017 and delivered to Krasnoyarsk HPP in September 2017. One runner has been already installed in 2018, and one is expected to be installed in 2019 2017 – 2022 Irkutsk HPP: 3 hydropower generating units replacement Approved 3 hydropower generating units replacement with total budget RUB2.8 bn. The units are expected to be commissioned by 2022

Capex1

USD equivalent 181 mn RUB 11 bn USD equivalent 148 mn FY 2017 FY 2018 RUB 8.7 bn

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Energy Segment Debt Overview

29

Key debt metrics

(USD mn) 31 Dec 2018 IFRS 31 Dec 2017 IFRS Loans and borrowings 3,991 4,550

• Corporate Debt

2,818 3,196

• Operational Debt

1,173 1,354

Deferred liability1

• 109

Total debt 3,991 4,659 Cash and cash equivalents 339 143 Net debt 3,652 4,516 Net debt / adj. EBITDA 3.1x 3.9x

Nominal corporate debt maturity profile as at 31 Dec 2018

(USD mn)

Debt portfolio2 breakdown as at 31 Dec 2018

By currency By interest rate

Note: Due to rounding, total may not correspond with the sum of the separate figures (1) Deferred liability for acquisition of PJSC Irkutskenergo shares (the Group’s subsidiary) (2) Nominal debt – USD3,932mn. Nominal debt includes also USD 1.2 bn of revolving facilities to finance short-term operational activities

98.5% 0.1% 1.4%

RUB EUR USD

39% 61%

Floating rate Fixed rate

371 561 352 285 477 716 2019 2020 2021 2022 2023 2024 4,516 (1,039) 357 472 (654) 3,652

FY17 Operating CF Investing CF Financing CF excl debt settlements and deff. liability payment Net effect from FX and other FY18

Net debt change in FY 2018

(USD mn)

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Global Market Deficit is Set to Remain due to Stable Demand Growth and Limited Production Additions

30

Majority of newly built capacity ex-China will be consumed domestically in form of VAPs

Source: UC RUSAL analysis

• Middle East is expected to be the

largest source of aluminium supply growth region. North America will rank 2nd in growth contribution on planned restarts

• Russian domestic consumption is

expected to expand at CAGR of 7.8% between 2018-2023

• The Chinese market is expected

to fall into deficit during the forecast period due to stricter environmental regulations and easing domestic demand

• India exports are expected to

decline, thanks to robust domestic demand

• In general the North American,

European and Asian markets deficit is expected to increase

Global aluminium balance

PRODUCTION

4.5 4.8 9.5 10.4 2018 2023

CONSUMPTION

3.8 4.3 0.9 1.3 2018 2023 3.7 4.1 2.2 3.1 2018 2023 5.7 6.7 1.6 1.9 2018 2023 36.4 43.5 35.8 44.7 2018 2023 1.0 1.7 6.4 6.9 2018 2023 1.9 2.0 0.3 0.3 2018 2023 1.7 1.8 0.7 0.9 2018 2023 1.2 1.3 1.2 1.4 2018 2023 2.9 3.3 0.4 0.4 2018 2023 0.9 1.4 5.5 6.0 2018 2023

MIDDLE EAST INDIA RUSSIA EUROPE CHINA AUSTRALIA & NEW ZEALAND OTHER ASIA AFRICA CENTRAL & SOUTH AMERICA

USA

CANADA

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Metals Segment Production

31

860 869 875 883 878 885 890 878 3,487 3,531 20 21 25 29 21 21 20 35 95 97 30 31 31 32 33 33 30 29 124 125 910 921 931 944 931 939 940 939 500 1,000 1,500 2,000 2,500 3,000 3,500 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 FY'17 FY'18 Russia Siberia Russia European Part Sweden

716 724 688 710 709 655 1,387 1,321 1,254 1,523 1,609 1,264 1,125 1,041 1,089 1,180 1,207 817 416 431 423 433 420 439 497 490 470 453 484 468 187 192 180 188 185 186 149 153 131 118 122 130 476 471 445 410 457 480 161 324 344 312 394 345 22 79 80 717 829 918 1,075 1,388 1,630 1,965 1,990 1,892 1,924 1,999 1,958 2,741 2,945 2,961 3,320 3,848 3,719 1,125 1,041 1,089 1,180 1,207 817

1,000 2,000 3,000 4,000 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Russia Ukraine Ireland Australia* Jamaica Guyana Guinea

kt

Alumina Bauxite Nepheline ore Aluminium

kt

*Australia output (QAL) is presented on the ownership pro rata basis. In the income statement alumina sourced from QAL operations are reflected as bauxite purchases from third parties and tolling fee RUSAL pays to QAL for processing bauxite into alumina

3,707 3,753

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Aluminium Sales and Revenue

32

Other revenue, USD mn Primary aluminium sales, kt Revenue from primary aluminium and alloys, USD mn

• The Group’s primary aluminium sales for the year ended 31

December 2018 decreased (-7.2% YoY) totaling 3,671 thousand

• tonnes. VAP sales amounted to 1,664 thousand tonnes (-11.0%

YoY). The share of VAP sales in total sales now stands at 45%;

• The decline primary aluminium sales primarily reflected

sanctions and is expected to normalise

• Revenue from sales of alumina increased by 26.8% to USD975

million in 2018 as compared to USD769 million in 2017 primarily due to an increase in the average sales price by 32.5%, which was partially offset by a decrease in the sales volumes by 4.4%.

• Revenue from sales of foil and other aluminium products

increased by USD23 million, or by 7.1%, to USD346 million in 2018, as compared to USD323 million in 2017 primarily due to the growth in sales of other aluminium products .

• Revenue from other sales, increased by 20.4% to USD666 million

in 2018, due to a 14.1% increase in sales of other materials (such as anode blocks by 18.4%, silicon by 23.8%).

• Revenue from sales of primary aluminium and alloys was almost

flat in 2018 compared to 2017 primarily due to a 7.3% increase in the weighted-average realized aluminium price per tonne driven by an increase in the LME aluminium price (to an average of USD2, 110 per tonne in 2018 from USD1,968 per tonne in 2017), that offset a 7.2% decrease in primary aluminium and alloys sales volume.

kt 3,639 3,480 147 131 169 60 1,869 1,664 2,086 2,007 1,000 2,000 3,000 4,000 12M17 12M18 12M17 12M18 3,955 3,671

Ingots Third Parties Aluminium BoAZ Auminium Rusal

• 7.2%

YoY

3,955 3,671

$ mn

VAP 8,324 8,293 769 975 323 346 553 666 2,000 4,000 6,000 8,000 10,000 12M17 12M18 Aluminium Alumina Foil Other and other aluminium products

$9,969 +3.1% YoY $10,280

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

2,120 (43) 582 (69) (427) 2,163

FY 2017 EBITDA Premiums / Aluminium sales structure Effect of LME and quotation period Aluminium sales volumes Change in cash cost and

• ther

components FY 2018 EBITDA

Metals Segment EBITDA Breakdown

33

21% 21%

2018 EBITDA bridge build-up*

(USD mn)

• The increase in LME aluminium prices YoY (reached $2,107/t (+8.5%

YoY)) on the back of the US sanctions largely offset a decline in aluminium sales volumes and higher cash cost and

• ther

components.

• FY 2018 EBITDA increased marginally to US$2,163mn (+2.0% YoY).

EBITDA margin stood at 21%.

• In terms of the segment impact, the aluminium segment remained

the largest contributor to the Group EBITDA.

• Robust results of alumina business that followed the spike in

alumina prices also improved EBITDA profitability.

+$43 mn (+2.0%)

2,120 2,204 232 (316) Aluminium segment Alumina segment Unallocated FY 2017 EBITDA

Aluminium business results1 Alumina business results 2 Other non-core businesses results 3

1) Aluminium business results, excluding alumina segment margin, the results of aluminium resales and other non-production costs and expenses 2) Alumina business results, excluding margin on sales to aluminium segment, the results of alumina and bauxite resales and

• ther non-production costs and expenses

3) Other non-core businesses results are represented by foil, powder, silicon sales and other operations and general and administrative expenses of the headquarter

2,163 2,150 353 (340) Aluminium segment Alumina segment Unallocated FY 2018 EBITDA

Aluminium business results1 Alumina business results 2 Other non-core businesses results 3

2017 EBITDA bridge build-up*

(USD mn) 27% 13% na 21% 28% 10% na 21%

* The segment result margin is calculated as a percentage of segment EBITDA to total segment revenue per respective segment

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

Metals Segment Capital Expenditure

34

• In 12M18 capex totaled $834 mn (-1% YoY)
• Throughout the year, maintenance amounted to c. 46% of the aggregate CAPEX
• The Company continued its investment into key development projects as per its strategic priorities of preserving its competitive advantages of

vertical integration into raw materials and product mix enhancements:

• Bauxite self-sufficiency: Dian-Dian bauxite deposit, 1st stage (capacity of 3 mtpa) was launched in June 2018;
• Alumina capacities expansion: Friguia alumina refinery complex (a bauxite mine and alumina refinery) was restarted in June 2018 (after the

full ramp up, production will increase up to 600 ktpa);

• Carbon materials self-sufficiency:

⁻ Volgograd anode plant (up to 105 ktpa of baked anodes) with own calcined coke capacity was launched in August 2018; ⁻ Taishet anode plant (1st stage) - construction of anode baking furnace with a capacity of up to 217.5 ktpa of baked anodes* is expected to be launched in December 2019; and

• Aluminium capacities expansion: Taishet aluminium smelter (1st line, 428.5 ktpa).

Capex dynamics

* For baking of SAZ green anodes during modernization of anode baking furnaces

84 110 213 168 129 192 226 295 220 197 163 254 100 200 300 400 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2016 2017 $ mn 2018

46% 54%

Maintenance Development

12M18 834 842

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

(USD bn)

7,648 (680) 106 371 (3) 7,442 FY17 Operating CF Investing CF incl divs received Financing CF excl debt settlements Other factors FY18 Cash and equivalents

2019 2020 2021 2022 2023 2024

PXF Sberbank eurobond panda bond Others

(0.8) 0.9 0.6 1.4 1.7 2.1 1.6

Metals Segment Debt Overview

35

Net debt change in 2018

(1) For the Leverage ratio calculation the financial indebtedness secured by NN shares is excluded from the total net debt and the Group’s EBITDA is net of the impact of NN shareholding (i.e. excludes dividends paid on any of the NN Shares). The leverage ratio is, thus, tested on the basis of the Group’s core operations (2) As of 31 Dec 2018 the Company partially converted the principal outstanding amount of the Loan (USD 850 mn) into RUB with the interest rate 9.15%. In January 2019 the Company has finalized the conversion process and now it stands at ½ of the loan (US 2.1 bn)

Key debt metrics

USD mn 31 Dec 2018 31 Dec 2017 Total debt, IFRS 8,286 8,479 Cash and cash equivalents 844 831 Net debt, IFRS 7,442 7,648 Adjusted Total Net Debt1 3,156 3,568 Adjusted Total Net Debt / EBITDA (covenant)1 1.4x 1.6x Leverage covenants1 3.0x 3.0x

By currency2 By interest rate

Debt Structure as at 31 Dec 2018

82% 15% 3% USD RUB RMB 63% 37% floating fixed

Debt maturity as at 31 Dec 2018

(USD mn)

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

En+ Group Income Statement

36

Income Statement

USD mn Three months ended Year ended 31-Dec-2018 31-Dec-2017 31-Dec-2018 31-Dec-2017 Revenue 2,944 3,378 12,378 12,094 Cost of sales (1,995) (2,171) (8,209) (7,970) Gross profit 949 1,207 4,169 4,124 Distribution, general and administrative expenses (423) (469) (1,509) (1,529) Impairment of non-current assets (35) 55 (244) (89) Other operating (expenses)/income, net (51) (40) (136) (136) Results from operating activities 440 753 2,280 2,370 Share of profits of associates and joint ventures 181 126 948 621 Finance income 69 6 216 59 Finance costs (291) (319) (1,176) (1,432) Profit before tax 399 566 2,268 1,618 Income tax expense (160) (61) (406) (215) Profit for the period 239 505 1,862 1,403 Attributable to: Shareholders of the Parent Company 156 274 967 727 Non-controlling interests 83 231 895 676 Profit for the period 239 505 1,862 1,403

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

En+ Group Business Segments

37

Income Statement by Business segment

USD mn Year ended 31-Dec-2018 En+ Group Consolidated Metals segment Adjustments Energy segment Revenue 12,378 10,280 (1,049) 3,147 Operating expenses (9,091) (8,117) 999 (1,973)

• Adj. EBITDA

3,287 2,163 (50) 1,174 Depreciation and amortisation (752) (513)

• (239)

Loss on disposal of PPE (11) (12)

• 1

Impairment of non-current assets (244) (157)

• (87)

Results from operating activities 2,280 1,481 (50) 849 Share of profits of associates and joint ventures 948 955

• (7)

Interest expense (881) (471)

• (410)

Other finance income/(costs) (79) (12)

• (67)

Profit before tax 2,268 1,953 (50) 365 Income tax expense (406) (255) 3 (154) Profit for the period 1,862 1,698 (47) 211

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

En+ Group Balance Sheet

38

Balance Sheet Balance Sheet (cont’d)

USD mn 31-Dec-2018 31-Dec-2017 ASSETS Non-current assets Property, plant and equipment 9,322 9,940 Goodwill and intangible assets 2,195 2,392 Interests in associates and joint ventures 3,701 4,459 Deferred tax assets 125 87 Derivative financial assets 33 34 Other non-current assets 77 75 Total non-current assets 15,453 16,987 Current assets Inventories 3,037 2,495 Trade and other receivables 1,389 1,309 Short-term investments 211 26 Derivative financial assets 9 29 Cash and cash equivalents 1,183 974 Total current assets 5,829 4,833 Total assets 21,282 21,820 USD mn 31-Dec-2018 31-Dec-2017 EQUITY AND LIABILITIES Equity Share capital

• Share premium

973 973 Additional paid-in capital 9,193 9,193 Revaluation reserve 2,718 2,471 Other reserves (62) (72) Foreign currency translation reserve (5,024) (4,544) Accumulated losses (5,143) (6,030) Total equity attributable to shareholders

• f the Parent Company

2,655 1,991 Non-controlling interests 2,747 2,394 Total equity 5,402 4,385 Non-current liabilities Loans and borrowings 10,007 10,962 Deferred tax liabilities 1,219 1,306 Provisions – non-current portion 459 542 Derivative financial liabilities 24 61 Other non-current liabilities 208 262 Total non-current liabilities 11,917 13,133 Current liabilities Loans and borrowings 2,270 2,067 Provisions – current portion 71 40 Trade and other payables 1,615 2,143 Derivative financial liabilities 7 52 Total current liabilities 3,963 4,302 Total equity and liabilities 21,282 21,820

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

En+ Group Cash Flow Statement

39

Source: En+ Group

Cash Flow Statement Cash Flow Statement (cont’d)

Year ended USD mn 31-Dec-2018 31-Dec-2017 OPERATING ACTIVITIES Profit for the year 1,862 1,403 Adjustments for: Depreciation and amortisation 752 736 Impairment of non-current assets 244 89 Net foreign exchange loss / (gain) 253 (29) Loss on disposal of property, plant and equipment 11 28 Share of profits of associates and joint ventures (948) (621) Interest expense 923 1,117 Interest income (42) (21) Change in fair value of derivative financial instruments (171) 287 Net effect of discounting of trade receivables and payables (2) 5 Income tax expense 406 215 Dividend income (1) (1) (Reversal of impairment) / Impairment of inventory (22) 3 Impairment of receivables 65 28 Reversal of tax provision

• (2)

Environmental provision 2 3 Pension provision (1) 3 Operating profit before changes in working capital 3,331 3,243 Increase in inventories (468) (431) Increase in trade and other receivables (201) (163) (Decrease) / increase in trade and other payables (703) 294 Cash flows generated from operations before income taxes 1,959 2,943 Income taxes paid (251) (289) Cash flows generated from operating activities 1,708 2,654 Year ended USD mn 31-Dec-2018 31-Dec-2017 INVESTING ACTIVITIES Proceeds from disposal of property, plant and equipment 23 48 Acquisition of property, plant and equipment (982) (970) Acquisition of intangible assets (22) (20) Interest received 39 14 Dividends from associates and joint ventures 909 806 Dividends from financial assets 4 7 Other investments (345) (1) Proceeds from disposal of financial assets 1

• Acquisition of subsidiaries

(53) (4) Changes in restricted cash (26) (4) Cash flows used in investing activities (452) (124) FINANCING ACTIVITIES Proceeds from borrowings 4,431 8,610 Repayment of borrowings (4,445) (9,832) Acquisition of non-controlling interest (103) (241) Proceeds from Offering

• 1,000

Restructuring fees and expenses related to Offering (19) (64) Interest paid (881) (980) Payments from settlement of derivative instruments 125 (182) Dividends to shareholders (68) (373) Dividends to non-controlling shareholders of subsidiaries

• (155)

Distributions to shareholder

• (15)

Cash flows used in financing activities (960) (2,232) Net change in cash and cash equivalents 296 298 Cash and cash equivalents at beginning of period, excluding restricted cash 957 656 Effect of exchange rate fluctuations on cash and cash equivalents (113) 3 Cash and cash equivalents at end of the period, excluding restricted cash 1,140 957

FY 2018 highlights and recent developments Performance overview 2019 outlook Appendix

EBITDA Reconciliation

40

Reconciliation of adj. EBITDA for FY 2018 Reconciliation of adj. EBITDA for 4Q 2018

Year ended 31 December 2018 Year ended 31 December 2017 USD mn En+ Group Metals Energy En+ Group Metals Energy Results from operating activities 2,280 1,481 849 2,370 1,523 891 Add: Amortisation and depreciation 752 513 239 736 488 248 Loss on disposal of property, plant and equipment 11 12 (1) 28 25 3 Impairment of non-current assets 244 157 87 89 84 5 Adjusted EBITDA 3,287 2,163 1,174 3,223 2,120 1,147 Three months ended 31 December 2018 Three months ended 31 December 2017 USD mn En+ Group Metals Energy En+ Group Metals Energy Results from operating activities 440 234 211 753 500 250 Add: Amortisation and depreciation 188 130 58 188 124 64 Loss on disposal of property, plant and equipment 6 8 (2) 21 17 4 Impairment of non-current assets 35 (9) 44 (55) (55)

• Adjusted EBITDA

669 363 311 907 586 318